Wise, Shane

2:00 Class

1. a) Quality Assurance
b) Quality of Goods- measured by number of defects per 10,000 units
Cost Effectiveness- measured by average profit while taking in potential defects into consideration
Susceptibility of Change in Shipping Orders- measured by the duration it takes to receive products
and the degree in which the supplier responds to our order demands
Ease of Installation- measured by how easily the parts will fit into our washing machines, as well as
if we have to retrain employees
Reputation of Supplier- measured by how the community views the supplier's business and how well
they work with other companies

2.
Vendor A Vendor B Vendor C Vendor D Vendor E Vendor F
Quality of 6 7 4 3 1 3
Goods
Cost 2 5 4 3 2 4
Effectiveness
Susceptibility 6 2 3 6 2 4
to Change in
Shipping
Orders
Ease of 6 5 4 1 2 3
Installation
Reputation of 6 2 2 3 4 5
Supplier
TOTAL 26 21 17 16 11 19

3. My method for constructing a vendor matrix was to use a scale of 1 to 7, with 7 being the highest and 1
the lowest. What I did for preparing this table was carefully examined all information available on each
supplier and rated them for each criterion. Please note that this is a rating and not a ranking.

4.My first choice for vendors is Vendor A, however the pricing for the parts needed for the washing
machine is greatly above what our business is considering. This leaves Vendor B as my second choice.

5. While the financing was known for some suppliers and I attempted to take that into consideration when
determining the cost effectiveness of buying from those vendors, it did not help with the suppliers that
had not openly stated their financing method. This prevented me from giving a fair evaluation between
vendors and their pricing methods. Another bit of information that was only sometimes mentioned was
the inventory each vendor had on hand at a given time. This would have been very helpful in trying to
determine how readily available parts would be on a short notice.

6. The purchasing department of the buying center would most likely have an objection with my first
choice of vendors (Vendor A) because of, like I stated earlier, it is easily the most expensive part on the
market and also requires an exclusive 2-year contract. The purchasing center will be looking to decrease
the cost of purchasing to help maximize the profit on our washing machines, which will not be effective
with the purchasing of these parts.
 Wise, Shane
2:00 Class

The Sales and Marketing division of the buying center could possibly have an objection with my
backup choice, Vendor B, due to the fact that they are one of the main competitors for many of Dura-
Prod's industrial appliances. Partnering up with a main competitor could make it somewhat difficult to
market our product against Vendor B's products, which has the capability to negatively influence sales.